You are not locked into the Amazon eco system with a Kindle. You can convert non-DRMed Epubs and there are a decent number of book stores that sell Mobi books that can go right on the Kindle.
I am hearing good things about the PDF support on the K3. At least one Aussie College Student has said that she is very pleased with the PDF support on her K3.
I have the DXG and love it. I can't say how it works for PDF's because I do not use it to read PDF's but the larger screen is great. Hopefully it gets a firmware update that gives it the same capabilities as the K3.
ETA: The K3 supports Chinese and Japanese, perhaps others. They were just added.
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